Dollar Stretcher Guest BloggersDedicated to bringing you some of the best information to help you survive tough economic timeshttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/atom.aspxCommunity Server2014-02-12T11:11:00ZTurn "Off" Your Credit Cards to Prevent Fraudhttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/05/12/turn-quot-off-quot-your-credit-cards-to-prevent-fraud.aspx2014-05-12T17:40:00Z2014-05-12T17:40:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank" rel="nofollow">LowCards.com</a></i></p>
<p>Don&#39;t you wish you were able to turn off your credit cards when you don&#39;t need
them so that no one else could use them? And then back on when you were ready to
make a purchase? With <a href="http://www.ondotsystems.com" target="_blank" rel="nofollow">OnDot
CardControl</a>, that may not be such a far-fetched idea.</p>
<p>OnDot Systems
is a startup company based in San Jose, California that offers a remote control
for your credit cards. The app allows you to control which of your credit cards
are active at any given time directly from your phone or tablet. It also allows
you to set spending limits on the cards and restrict the location where the
cards can be used.If someone tries to use your card number outside of
those limits, the purchase will be declined.</p>
<p>This app could be
particularly helpful to parents since it enables them to restrict the money on
their child&#39;s credit card. Parents can remove the restriction in the case of an
emergency, but this ensures that their children will not be spending money
frivolously.</p>
<p>People who have emergency credit cards can turn them off
when not in use to protect against identity theft. People trying to live on a
budget can limit their spending from one card to the next.</p>
<p>&quot;Our system
applies to every card,&quot; <a href="http://www.businessinsider.com.au/ondot-card-app-2014-4" target="_blank" rel="nofollow">said</a>
one of OnDot&#39;s co-founders Vaduvur Bharghavan.No matter which cards you
may carry, you should be able to control the cards through your phone. You can
also set up email alerts to notify you when a transaction takes place. If it is
a purchase you did not make, you can contact your credit card company
immediately.</p>
<p>Lone Star National Bank tested this system with their
customers and saw tremendous improvements in their fraud department. &quot;We
were able to decrease our fraud losses from $450,000 in 2012 to $180,000 in
2013, a reduction of over 60%,&quot; said the bank&#39;s CEO, David Penoli. &quot;This has
been a big breakthrough, and justifies the solution on its own.&quot;</p>
<p>If you
want a new way to control your finances, this could be one
answer.</p>
<p><i>Bill Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank" rel="nofollow">LowCards.com</a>, a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card. </i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=365732" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxThe Mobile Wallet Battle Heats Uphttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/04/30/the-mobile-wallet-battle-heats-up.aspx2014-04-30T14:37:00Z2014-04-30T14:37:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>Domino&#39;s Pizza is now accepting payment via Google Wallet. You can pay for your
pizza with your Android app. That might not sound like big news but it
signals a significant move in the battle for how you make your
transactions.</p>
<p>Google has started to roll out a service that allows Gmail
users to send money to anybody they desire. When you sign up for this feature,
you become part of Google Wallet, and Google will have indirect access to your
bank account and credit card information.</p>
<p>With approximately 500 millions
users, Gmail has about the same number of users as Facebook. But Google has the
ability to put a &quot;Pay Now&quot; button on YouTube, Google Maps or Google News,
similar to what PayPal currently does. If you login to Google and have a Google
Wallet account, then you could purchase things with one click if the site is set
up for Google Wallet.</p>
<p>The way you make transactions in the future is
shaping up as a huge three-way battle between PayPal, Google Wallet and Apple.
You store your bank and credit card information with these systems, and then
really never have to deal with the account information again. If you are on a
website and want to pay for something, you simply click the PayPal, Google or
Apple button, and you are done.</p>
<p>Apple and Google may eventually be the
leaders with the way they have developed their smartphone operating systems, iOS
and Android. Your phone becomes your wallet and has all your bank and credit
card information securely stored in it. You just wave your smartphone at the
register and verify it in some way (possibly a fingerprint scan?) and the
transaction is complete.</p>
<p>Moves toward this new type of system have been
taking place for some time. But with the addition of new merchant partners to
Google Wallet and the invention of the cash transfer system with Gmail, the
giants are stepping up the battle for your transactions.</p>
<p><i>Bill
Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>, a site that simplifies the confusion of shopping for credit cards.
It is a free, independent website that helps consumers easily compare credit
cards in a variety of categories such as lowest rates, rewards, rebates, balance
transfers and lowest introductory rates.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=365253" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxHeartbleed Bug–What You Need to Knowhttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/04/14/heartbleed-bug-what-you-need-to-know.aspx2014-04-14T14:55:00Z2014-04-14T14:55:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>Software designed to provide extra security for websites has now been deemed to
have a significant flaw that has made consumers&#39; personal data vulnerable to
theft by hackers.</p>
<p>The Heartbleed Bug is a flaw found in OpenSSL, which is
a cryptographic program that digitally encodes secure data as it is sent to and
from computer servers, and makes it so that the service provider and the
intended recipients are the only parties who can read it.</p>
<p>Your computer
may be visiting a website that is using this program when you see the padlock in
your computer browser. Other versions of this type of program exist, but only
the OpenSSL version has the flaw.</p>
<p>Unfortunately, OpenSSL is popular and
websites such as Yahoo did use the technology to guard their sites. It is
estimated that up to 2/3 of all sites may have been affected by the
bug.</p>
<p>Google Security and Codenomicon, a security firm in Finland that
discovered the bug, said Monday that the bug has existed in the software for two
years. It could be exploited to reveal the secret keys that identify service
providers using OpenSSL.</p>
<p>If attackers copied these keys, they could steal
the names and passwords of people using these websites and copy their data. They
could then set up fake sites that would appear real because they used the stolen
keys.</p>
<p>Consumers seem to be assaulted every day with news of security
breaches, but this one may be major because of the sheer number of websites that
are vulnerable.</p>
<p>Thus far, there have been no widespread reports of
hackers using data from this breach, but to be on the safe side, many experts
are recommending consumers to change passwords on financial
accounts.</p>
<p>There is nothing that needs to be done on your personal
computer because the flaw is with the websites. If you are concerned about
whether a website you frequent is vulnerable, you can test it using <a href="http://www.ssllabs.com/" target="_blank">this
free tool</a>.</p>
<p><i>Bill Hardekopf is CEO of </i><a href="http://www.lowcards.com/" target="_blank"><i>LowCards.com</i></a><i>,
a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=364517" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxYour Child's ID Is a Big Target for Identity Thieveshttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/04/03/your-child-s-id-is-a-big-target-for-identity-thieves.aspx2014-04-03T19:21:00Z2014-04-03T19:21:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>Child identity theft can be a bigger problem than other forms of identity theft
because it can go unnoticed for years.</p>
<p>A <a href="https://www.cylab.cmu.edu/files/pdfs/reports/2011/child-identity-theft.pdf" target="_blank">recent
Carnegie Mellon study</a> found that 10.2% of children under the age of 18 had
someone else using their Social Security number. That percentage is dramatically
higher than the 0.2% rate for adults in the study.</p>
<p>Crooks are targeting
children because the probability of discovering the theft is so low. Children
rarely use their Social Security number and parents usually do not monitor the
child&#39;s identity.</p>
<p>Thieves can use a child&#39;s identity to open new
lines of credit or apply for government benefits. This identity theft can have a
devastating impact on a young person&#39;s credit score.</p>
<p>Many states do not
have system for dealing with child identity theft, but Delaware, Oregon and
Maryland have recently inacted laws that allow parents to establish their
child&#39;s credit identity and freeze it until the child becomes an adult.
Texas and Illinois are considering similar laws.</p>
<p>A free service also
exists from <a href="https://www.allclearid.com/" target="_blank">AllClearID</a>
called ChildScan. The service looks through employment records, credit
records, medical accounts and criminal records to see if your child&#39;s Social
Security number has been stolen and is being used.</p>
<p>The study was based
on the identity protection scans on 42,232 children (age 18 and under) in the
United States during 2009-2010. The pool of 42,232 child identities includes
everyone under 18 in a database of over 800,000 identity
records.</p>
<p><i>Bill Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>, a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=364062" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxNegligent Healthcare Practices Put Your Identity at Riskhttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/03/28/negligent-healthcare-practices-put-your-identity-at-risk.aspx2014-03-28T15:04:00Z2014-03-28T15:04:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>A <a href="http://www.ponemon.org/blog/fourth-annual-benchmark-study-on-patient-privacy-and-data-security" target="_blank">new
study</a> indicates an astounding 43 percent of identity theft cases in 2013
were the result of medical identity theft. This occurs when criminals gain
access to your medical files and use information to open accounts and make
purchases.</p>
<p>The study points out the lack of security for electronic
devices like tablets and smartphones used in healthcare
facilities.</p>
<p>The Fourth Annual Patient Privacy and Data Security report
from the Ponemon Institute says, &quot;Despite concerns about employee negligence
and the use of insecure mobile devices, 88 percent of organizations permit
employees and medical staff to use their own mobile devices such as smartphones
or tablets to connect to their organization&#39;s networks or enterprise systems
such as email.&quot;</p>
<p>Most healthcare organizations that practice the &quot;bring
your own device&quot; policy do not require employees to use anti-virus programs on
their tablets and phones. This makes the devices vulnerable to high tech thieves
who want to steal information from the programs.</p>
<p>The report says, &quot;More
than half of (these) organizations are not confident that the personally-owned
mobile devices are secure.&quot;</p>
<p>What could the criminals do with your medical
records? This depends on how much information is stored. In most cases, your
full name, address and Social Security Number are enough for hackers to create
credit cards and open accounts in your name. They rack up as many charges as
possible, and then you are left to clean up the mess.</p>
<p>Ask your hospital,
clinic, doctor&#39;s office or other medical facility about their security
practices. Take advantage of getting your <a href="http://www.annualcreditreport.com" target="_blank">free
credit report</a> every year from each of the three credit reporting agencies.
It is in your best interest to take steps to guard against medical identity
theft.</p>
<p><i>Bill Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>, a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=363753" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxThe Appeal of Prepaid Debit Cardshttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/03/14/the-appeal-of-prepaid-debit-cards.aspx2014-03-14T14:35:00Z2014-03-14T14:35:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com" target="_blank">LowCards.com</a></i></p>
<p>Two <a href="http://www.pewstates.org/projects/prepaid-cards-research-project-328981" target="_blank">new
surveys</a> from the Pew Charitable Trusts show that prepaid debit cards have
become a popular alternative to checking accounts for more
Americans.</p>
<p>Consumers loaded $64.5 billion onto <a href="http://www.lowcards.com/prepaid-debit-cards" target="_blank">prepaid debit cards</a> in 2012, a 13% increase from the $56.8 billion in 2011, and more than double the $28.6 billion in 2009.</p>
<p>According to one survey, 12
million people, or 5% of adults, use prepaid cards at least once a month. The
average prepaid card customer had a household income of nearly $30,000 per year.
Three-quarters of these consumers are under 50 years of age.</p>
<p>Consumers
are using prepaid cards as a way to stay out of credit card debt, control
their spending, make purchases online, and avoid overdrafts. Among the people who
have had a checking account, two in five have had problems with overdraft
fees.</p>
<p>Prepaid cards may be a way to avoid checking accounts, but there
are no federal laws or regulations that directly protect consumers from hidden
fees, liability for unauthorized transactions, or loss of funds in the event of
an issuing institution failure. This may change soon since the Consumer
Financial Protection Bureau is expected to issue some guidelines on prepaid
cards this May.</p>
<p>Prepaid cards don&#39;t have to provide disclosures of fees
or terms. The study found that only 32% of consumers compared terms before
choosing a card.</p>
<p>The Pew study shows the changes in the prepaid market
from 2012 to 2013. Retail banks and established financial services companies are
now offering these cards. Prepaid cards offered by large banks were more
economical in 2013 and some of the disclosures were clearer including what is
covered by FDIC insurance.</p>
<p>More cards are charging monthly fees that
are similar to traditional checking accounts instead of other transaction-based
fees. Of the 66 most popular prepaid cards, the median fees were $5.95 for a
monthly fee, $2 for an out-of-network or in-network ATM withdrawal, $1 for a
point-of-sale signature or PIN transaction, and $1.95 for a live customer
service call.</p>
<p><i>Bill Hardekopf is CEO of <a href="http://www.lowcards.com" target="_blank">LowCards.com</a>,
a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=363020" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxBig Changes in Frequent Flier Programshttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/03/05/big-changes-in-frequent-flier-programs.aspx2014-03-05T20:08:00Z2014-03-05T20:08:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>Mergers have dramatically consolidated the airline industry,
reducing the number of carriers, flights and competition. One of the overlooked
factors of this consolidation is the significant change in frequent flier
programs. </p><p>Airlines are now rewarding how much members spend rather than
just the number of miles they accumulate. </p>
<p>In January, Delta Airlines
and United Airlines started requiring cardholders to spend $2,500 in addition to
logging 25,000 miles in order to obtain the lowest level of seat. Spending
requirements are waived if a loyalty program participant spends $25,000 a year
on purchases with a carrier co-branded credit card.</p>
<p>Airlines say the
change is to reward their best customers and give the bigger rewards to the
customers who spend the most money. Jet Blue and Southwest Airlines already had
expenditure-based loyalty programs.</p>
<p>As airlines have consolidated to
four major carriers (United, Delta, American and Southwest), fewer competitors
mean airlines now have more power to make these changes. Some experts say the
days of the free domestic ticket for 25,000 miles will soon be over and the
airlines will be happy to see them go.</p>
<p>Some carriers have also increased
their mileage requirements on premium reward travel. For example, Delta
increased the miles for a &quot;Saver Seat&quot; to Hawaii from 40,000 to 45,000 Sky
Miles. United&#39;s Mileage Plus members need to spend 30 percent to 40 percent more
miles to get a free seat on any Star Alliance partner airline.</p>
<p>American
Airlines is merging into US Airways and has yet to make any changes. Citi will
soon issue new credit card accounts for the combined American Airlines
AAdvantage frequent flyer program. The two frequent flyer programs are expected
to merge in 2015.</p>
<p>If you have saved airline miles, it may be time to use
them before they lose more of their value and seats become harder to find. Many
industry analysts advise flyers to start planning a trip almost a year ahead of
time and avoid peak vacation times to obtain a better value.</p>
<p><i>Bill
Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>,
a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=362541" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxPaying Taxes with a Credit Card: Is It a Good Idea?http://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/02/28/paying-taxes-with-a-credit-card-is-it-a-good-idea.aspx2014-02-28T17:52:00Z2014-02-28T17:52:00Z<p><i>by Bill Hardekopf, CEO of </i><a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></p>
<p>April 15 is less than two months away, and many of us are already trying to
figure out how to pay our taxes. Using a credit card to pay taxes may seem like
an easy way to appease the IRS, but this may not be the most financially prudent
thing to do. Before you pay taxes with a credit card, you need to know the pros
and cons, and what other options might be available.</p>
<p><b>Pros of Paying Taxes with a Credit Card</b></p>
<p>If
you pay your taxes with a credit card, you will not have to worry about being in
debt to the IRS or incurring a late payment penalty. You would just have to make
payments on your credit card until the balance is gone.</p>
<p>In rare cases,
you may be able to earn some rewards points for paying takes with a credit card,
depending on how your rewards program is set up. Many credit card companies have
blocks on these payments to prevent them from counting towards your rewards, so
check with your issuer.</p>
<p>If you are trying to consolidate your debts onto
a single account, this may give you an opportunity to do so. Use a low interest
credit card to pay off all of the debts you have, and then you can focus on
making one payment each month.</p>
<p><b>Cons of Paying Taxes with a Credit Card</b></p>
<p>When
you charge your taxes to your credit card, you have to consider the interest
rate on your card. This is usually much higher than what you would have with a
payment plan through the IRS. If you have a new card with 0% interest, note when
that introductory rate expires. You will need to make sure to pay off your debt
before then.</p>
<p>Know there are fees for paying taxes with a credit card.
Typically, charging taxes with your credit card will cost an additional 2% to 4%
of your tax bill. That means you&#39;d be paying an extra $20 to $40 on a tax bill
of $1,000. These fees do not go to the IRS. They go to the payment processor.
They&#39;re basically money out of your pocket.</p>
<p>Having a high credit card
balance could impact your credit score; having a high tax debt with the IRS will
not. Your debt utilization ratio on your credit card (the amount of debt divided
by your available credit) will increase when you charge your taxes, and that
could negatively affect your credit score if that credit card debt remains high
for an extended period of time.</p>
<p><b>How to Pay Taxes with a Credit Card</b></p>
<p>If you
are going to pay taxes with a credit card, you will need to do so online. There
are six websites approved by the IRS to process these payments, as listed on
the <a href="http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card" target="_blank">IRS
website</a>. Each one charges a different fee, and they accept different types
of cards for payment. Go to the website and complete the information that
comes up in the prompts. You will have to select the type of payment you are
making (installment, payoff, etc.), and provide information that verifies your
identity. Once you pay, you will be sent an email with a receipt for the payment
you made.</p>
<p><b>Other Tax Payment Alternatives</b></p>
<p>If you do not
want to pay your taxes with a credit card, consider setting up an installment
plan with the IRS. This will give you time to pay off your debts. Call the IRS
to speak to a representative about your options. He or she will work something
out with you to suit your budget and your bill.</p>
<p>You could also make tax
payments with a debit card, rather than a credit card. You will not have a
chance to earn rewards that way, but you will pay much less in processing fees.
Most websites charge a flat fee of $2 to $4 for debit card transactions, which
could save a lot of money in interest penalties in the long run.</p>
<p>You may
be able to take out a low interest loan to pay off your tax debt. Then, you
would be making payments to a bank, not the IRS. Note that this may have a
negative impact on your credit score at first, but it might actually help your
score over time.</p>
<p>Consider all of your options before paying your taxes
with a credit card. A smarter solution may be out there for you.</p>
<p><i>Bill
Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>,
a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=362237" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxIdentity Fraud Continues to Skyrockethttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/02/20/identity-fraud-continues-to-skyrocket.aspx2014-02-20T17:30:00Z2014-02-20T17:30:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a></i></p>
<p>Identity theft is happening all the time - literally.&nbsp;A <a href="https://www.javelinstrategy.com/" target="_blank">new
report</a> by Javelin Strategy &amp; Research shows that there was a new
identity fraud victim nearly every two seconds in 2013. Last year, there
were an estimated 13.1 million victims of identity fraud, up nearly 500,000 from
2012. The study shows that 44% of all fraud involved an online
transaction.</p>
<p>The only good news in the report was that criminals stole
less money last year. The total amount stolen dropped from $21 billion in 2012
to $18 billion in 2013.</p>
<p>Identity fraud is defined in the report as an unauthorized use of another person&#39;s personal information to achieve illicit financial gain.</p>
<p>Pay attention to the data breach notices
because it is becoming more likely that you will be a victim of identity fraud.
In 2013, one-third of consumers who received a data-breach notification became a
victim of fraud. That figure was just one in five in 2011.</p>
<p>Identity
thieves have also become more aggressive. Instead of stealing your personal
information and opening a new account, they are taking over existing bank or
credit card accounts. The survey said this took place in about 28% of identity
fraud losses, up from 24% in 2012.</p>
<p>Identity thieves are not restricting
their efforts to bank accounts. The report showed that identity fraud carried
over to other financial accounts where consumers keep their money, such as eBay
and PayPal accounts. These thefts tripled last year and accounted for $5 billion
in losses.</p>
<p><i>Bill Hardekopf is CEO of <a href="http://www.lowcards.com/" target="_blank">LowCards.com</a>, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.</i></p><img src="http://community.stretcher.com/aggbug.aspx?PostID=361577" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspxMillenials Cutting Back on Credit Cards, But Struggle with Credit Scoreshttp://community.stretcher.com/blogs/dollar_stretcher_guest_bloggers/archive/2014/02/12/millenials-cutting-back-on-credit-cards-but-struggle-with-credit-scores.aspx2014-02-12T17:11:00Z2014-02-12T17:11:00Z<p><i>by Bill Hardekopf, CEO of <a href="http://www.lowcards.com" target="_blank">LowCards.com</a></i></p>
<p>Millenials are carrying far fewer credit cards with smaller balances than older
consumers but are still struggling with their credit scores and debt
utilization.</p>
<p><a href="http://www.experian.com/assets/consumer-information/infographics/experian-state-of-credit-2013.pdf" target="_blank">Experian&#39;s
Fourth Annual State of Credit</a> analyzed the credit card habits of four
generations: Millenials (19-29), Generation X (30-46), Baby Boomers (47-65) and
the Greatest Generation (66+). </p>
<p>Millenials carry 40% less credit card debt
than the average person. Consumers who are 19-29 years old have $2,682 in credit
card debt compared to the national average of $4,501. In addition, Millenials
have the fewest number of bank cards of the four generations: the average
millennial has 1.57 bank cards versus a national average of 2.19. In fact, a
greater number of younger people continue to shy away from carrying any cards.
In 2005, the number of people between the ages of 18 and 30 who did not own a
credit card was 9%. In 2012, that number rose to 16%.</p>
<p>One of the reasons
for the drop in credit cards is that banks tightened their credit standards
after the recession, making it harder for Millennials to qualify for a credit
card.</p>
<p>While Millennials show a reluctance to charge and open new
accounts, stores continue to launch campaigns aimed at this demographic. Macy&#39;s
recently released a full chain of brands that are designed for young adults, and
Marshalls has opened a store-within-a-store targeting this group as
well.</p>
<p>Despite carrying fewer cards and charging less, Millenials still
struggle with their credit score. The average Vantage score of 628 is
significantly lower than the national average of 681. The study found that
credit scores increased rather substantially as people entered an older
demographic.</p>
<p>Generation X has the most debt with an average amount of
$30,039, almost 8% higher than the national average. They also have the highest
rate of late payments. These figures explain their lower-than-average credit
score of 653.</p>
<p>Baby Boomers have the most cards with an average of 2.66.
But their average credit score (700) and debt utilization (30%) show they are in
fairly good financial shape.</p>
<p>It is not surprising that seniors have the
highest credit scores (735) with the lowest credit card balance, the least
amount of debt, and pay off their bills on time better than any other
generation.</p>
<p>As a country, the average credit score was 681, the average
debt utilization was 30%, the average debt was $27,887, and the average person
had 2.19 bank cards with an average balance of $4,501.</p>
<p><i>Bill Hardekopf
is CEO of <a href="http://www.lowcards.com" target="_blank">LowCards.com</a>,
a site that simplifies the confusion of shopping for credit cards. It is a free,
independent website that helps consumers easily compare credit cards in a
variety of categories such as lowest rates, rewards, rebates, balance transfers
and lowest introductory rates. It also gives an unbiased ranking and review for
each card.</i> </p><img src="http://community.stretcher.com/aggbug.aspx?PostID=361004" width="1" height="1">PamHhttp://community.stretcher.com/members/PamH.aspx